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Helping You Repay Responsibly
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Stafford
PLUS
Stafford Borrowers
You have repayment options! Read the following plans and choose the one that suits your financial situation.
As a PLUS Loan (parent) borrower, you are responsible to fulfill certain obligations. Repayment on PLUS Loans begins immediately and the first payment can be due within 60 days after full disbursement of the loan funds, unless you are eligible for deferment. There is no grace period for PLUS Loans. Interest begins to accumulate at the time the first disbursement is made, and you begin repaying both principal and interest while the student is in school. The maximum repayment period is 10 years and the minimum monthly payment is $50 or the interest due on the loan, whichever is greater.
Under limited circumstances, a PLUS Loan borrower can receive a deferment or forbearance. During deferment no payments are required. However, you are responsible for the interest on the loan. Parent borrowers cannot receive a deferment if a PLUS Loan is in default. During forbearance, payments are postponed or reduced, but you will still be responsible for the interest.
PLUS
Stafford Borrowers
You have repayment options! Read the following plans and choose the one that suits your financial situation.
- Standard Repayment — Borrowers make the same payment every month for the entire term of the loan.
- Income-Sensitive Repayment — Information on your income and total debt are collected each year and monthly payments are adjusted accordingly. Payments range between 4% and 25% of your gross monthly income. This option could increase the overall interest costs.
- Graduated Repayment — Borrowers initially make lower payments that gradually increase over the repayment period. This option results in somewhat higher interest costs over the life of the loan, compared to the standard repayment schedule. You must pay at least the interest that accrues between scheduled payments, but never more than 3 times the amount of any scheduled payment.
- Extended Repayment — Stafford Loan borrowers with no outstanding FFELP loans disbursed prior to October 7, 1998, are eligible for extended repayment if they accumulate a FFELP loan debt of more than $30,000. Through extended repayment, you may pay under a fixed or graduated plan and must repay the loan within 25 years. If youíre interested in extended repayment, you must request this option from your lender.
- Consolidation Loan — Borrowers who want to combine their outstanding education loans into a single loan with a single monthly payment should look into Consolidation Loans. The repayment period can extend up to 30 years, resulting in a lower monthly payment — which is helpful if you're struggling with current monthly payments. To get an idea of potential borrower payments, check out Student Loan Finance Association's SMART LOAN® Consolidation Account which offers some great borrower benefits.
As a PLUS Loan (parent) borrower, you are responsible to fulfill certain obligations. Repayment on PLUS Loans begins immediately and the first payment can be due within 60 days after full disbursement of the loan funds, unless you are eligible for deferment. There is no grace period for PLUS Loans. Interest begins to accumulate at the time the first disbursement is made, and you begin repaying both principal and interest while the student is in school. The maximum repayment period is 10 years and the minimum monthly payment is $50 or the interest due on the loan, whichever is greater.
Under limited circumstances, a PLUS Loan borrower can receive a deferment or forbearance. During deferment no payments are required. However, you are responsible for the interest on the loan. Parent borrowers cannot receive a deferment if a PLUS Loan is in default. During forbearance, payments are postponed or reduced, but you will still be responsible for the interest.
